Alaska LNG Developer Says Shipping Savings Justify High Infrastructure Costs

Alaska LNG’s developer, Glenfarne, claims that the project’s cost-saving shipping advantages will make it competitive despite its massive infrastructure costs. The project, supported by former President Donald Trump, aims to transport natural gas from Alaska’s North Slope through an 800-mile pipeline to an LNG export plant in southern Alaska. Once completed, shipping LNG from Alaska to Asia will be at least 65% cheaper than from the US Gulf Coast, according to Tim Fitzpatrick, communications director for Glenfarne.

The estimated cost of the project ranges from $44.5 billion to $54.5 billion, which critics argue is significantly higher than recent Gulf Coast developments. However, Glenfarne argues that the comparison is misleading because it includes the expense of pipeline and gas treatment infrastructure needed to bring stranded North Slope gas to market. The project entails about $1.4 billion per million tons per annum (MTPA) in delivery costs, Fitzpatrick said.

Glenfarne has identified customers for 13 million tons per year of LNG and needs 16 million tons annually to support project financing. Trump mentioned that South Korea will help finance the Alaska LNG effort as part of a $200 billion investment package, but Seoul quickly clarified that its role in the project is not yet set.